Processing Trade Impact Studies, Economic Growth In Guangdong Province

Processing trade was developed vigorously under the guidance ofopening-up policy; it complied with the tide of history that theinternational labor division and international industry transfer. As pioneerof launching processing trade in china, Guangdong processing tradeexperienced from naught to ENS, the scale was expanded progressively;its grade and level got boosted continuously. Processing trade promotedeconomic growth of Guangdong province effectively. However, thefactors, being in the course of processing trade development, restrictedpractical effect of processing trade to Guangdong economic growth.Combining with general situation of Guangdong processing trade,this paper analyzes qualitatively positive effect of Guangdong processingtrade on economic growth. At the same time, it analyzes the factorsbaffled the effect of processing trade on economic growth, such as lowvalue-added, low linkage effect on domestic industry, non-equilibriumstructure, contraband using processing trade channel, trade frictioninduced by processing trade origin ambiguity. Then, at the basis ofcollecting and coordinating pertinent data of Guangdong from 1988 to2005, this paper makes use of Ballasa-Feder model to take multi-linearregression, the outcome demonstrates that processing trade of Guangdongboosts its economic growth through externalities, nevertheless, the effectis still not strong, and need to be promoted ulteriorly. In the end, it givesthe countermeasure to these restricting factor in the course of processingtrade development, hopes that processing trade can make morecontribution to Guangdong economy growth.